Minnesota's governor and Democratic Party vice-presidential candidate, Tim Walz, has come under heavy scrutiny as he ranks last in fiscal responsibility among U.S. governors, according to a report by the Cato Institute.

The 2024 Fiscal Policy Report Card, released on Tuesday, highlights Walz's significant tax increases and spending hikes as key factors in his failing grade, as Fox Business reports.

The Cato Institute releases a Fiscal Policy Report Card every two years that evaluates the fiscal policies of U.S. state governors.

The 2024 edition did not go well for Walz, who received the lowest score, with an "F" grade and a score of 19. He is not alone, as five other Democratic governors also received failing grades.

Cato Report Highlights Tax Increases

Among the governors who received "F" scores, Wisconsin's Tony Evers scored 34, while Delaware's John Carney, Washington's Jay Inslee, and Maine's Janet Mills each received scores of 31.

New York’s Kathy Hochul was not far above Walz, with a score of 29. However, it was Walz's fiscal decisions that drew the most attention.

Chris Edwards, the author of the report, provided critical insights into the reasons behind Walz's ranking. His criticism focused primarily on Walz's policies that have significantly increased taxes and spending, particularly since his party gained control of the Minnesota legislature.

The Minnesota general fund budget experienced a notable increase from $51.9 billion in the 2022–2023 biennium to $70.5 billion for 2024–2025, marking a 36% increase. This surge in spending has been central to Cato's critique of Walz's governance and fiscal strategy.

Democratic Governors Receive Low Grades

Since gaining full control of the legislature in 2023, Walz’s administration has pursued more aggressive tax and spending increases. According to Edwards, Walz has been pushing for tax hikes targeting high earners, the middle class, and businesses in Minnesota.

Furthermore, many residents and businesses in Minnesota are reportedly leaving the state for warmer and lower-tax regions. This trend was also noted in the report, which linked the exodus to Minnesota's high taxation and cold climate.

On budget surpluses, Edwards commented, "Since, like many states, Minnesota has had budget surpluses, Walz's tax-hike zeal has seemed more like an effort to punish taxpayers than to fill any real need for more revenues."

He emphasized the legislative shift, noting that Walz's party has had full control since 2023 when the tax and spending hikes were implemented.

Minnesota's Economic Policies Under Fire

Despite the growth in the budget, Minnesota has seen a decline in its population, with individuals and businesses relocating to regions perceived to offer economic advantages.

Edwards described the state as a "cold, northern, and high-tax state," reiterating that Walz's policies have worsened the situation.

The negative impact of these fiscal policies is a crucial part of the report's findings. An "F" grade, being indicative of significant fiscal issues, underlines the broader concerns surrounding the economic policies of Walz's administration.

Walz’s office and the Harris-Walz campaign did not offer comments on the report's findings, leaving questions about their stance on the criticism unaddressed.

With the spotlight on his governance style, the question remains how these rankings will influence Walz’s role as a vice presidential nominee.

In summary, the Cato Institute's report criticizes Minnesota Gov. Tim Walz for his tax and spending policies, resulting in a failing grade. Alongside five other Democratic governors receiving similar grades, the report raises concerns about tax burdens and economic migration trends in high-tax states like Minnesota.